Argentina’s Anti-Corruption Authority Clears President Milei in Libra Token Case

Argentina’s federal anti-corruption authority has officially cleared President Javier Milei of any misconduct related to his February social media endorsement of the cryptocurrency token, Libra. The agency determined that Milei’s actions were conducted in a personal capacity and did not involve the use of federal resources.

After a thorough review, the anti-corruption office, which operates under a government ministry, concluded that the president’s X (formerly Twitter) post promoting Libra did not violate federal ethics laws governing public officials. However, it’s worth noting that a separate federal criminal court investigation into the matter is still ongoing.

The Origins of the Libra Token Controversy

The controversy began on February 14, when Delaware-registered Kelsier Ventures launched the Libra token as part of a project named “Viva La Libertad” (Long Live Freedom). Shortly after its release, President Milei shared a post on his X account, endorsing the token.

In his post, Milei described the initiative as a means to promote Argentine economic growth by supporting startups and small businesses through private investments facilitated by blockchain technology. To further validate his support, he shared the token’s blockchain contract address and framed the project as a legitimate private economic endeavor.

How the Market Reacted

  • Within 40 minutes of Milei’s endorsement, the price of Libra surged from nearly zero to approximately $5 per token.
  • The token’s market capitalization peaked at an estimated $4.5 billion during this period.

However, the excitement was short-lived. The token’s founders, who reportedly controlled around 70% of the total supply, sold off their holdings at the peak price. This massive liquidation triggered an 85% price drop within hours, resulting in investor losses estimated between $100 million and $250 million.

Milei’s Defense

President Milei has consistently denied any wrongdoing, maintaining that his social media activity was aimed at raising awareness about how cryptocurrencies could benefit Argentine businesses. He emphasized that his posts were personal opinions, shared after meeting with Libra’s founders, and not intended to encourage direct investment in the token.

The anti-corruption office’s investigation focused solely on whether Milei violated ethics rules for public officials. Their conclusion was clear: personal social media usage does not constitute an improper use of government resources.

Ongoing Criminal Investigation

Although the anti-corruption authority has cleared Milei of ethical violations, a separate federal criminal investigation continues. This probe is examining potential securities law violations and allegations of market manipulation related to the Libra token. Unlike administrative reviews, criminal courts operate independently and may arrive at different legal conclusions.

The outcome of the criminal investigation could have significant implications, as it addresses broader concerns about transparency and accountability in cryptocurrency-related activities involving public figures.

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